JD Clarks founder, Jeffery Clark, will remain as its chief executive. The company will be integrated into UMB Fund Services as a wholly owned division, but will continue to operate from JD Clarks Utah headquarters. JD Clark has $18.5 billion in assets under administration.
UMB has a history of commitment to growing our fee-based business and this acquisition of J.D. Clark gives us an opportunity to do just that, said Peter deSilva, president and chief operating officer of UMB Financial Corp. UMB has a strong balance sheet and has been actively looking for the right acquisition in the alternative investments space, and by combining our businesses, we will be in the top quartile of service providers to alternative investments in the U.S.
UMB Financials shares were up less than two percent, about 70 cents, and were trading at around $46.70 in early afternoon Friday.
A Keefe Bruyette & Woods report posted at Thomson Analytics last month increased its earnings estimate for UMB to $2.30 per share and bumped its 2010 earnings estimate up 50 cents, to $2.75. However, that report also called the bank holding company a potential underperformer. Although UMB has one of the strongest credit profiles in our coverage universe and capital levels remain very strong, the report stated, the companys risk-relationship is unfavorable.
UMB Financial Co., the parent to JD Clarks buyer, has more than 100 banking centers across Missouri, Illinois, Colorado, Kansas, Oklahoma, Nebraska and Arizona.
